ARM 401 Exam Practice
A 5 Whys analysis is used generally for issues concerning
A. Environmental factors.
B. Technology.
C. Human factors.
D. Construction. - ANS-C
A 35-12 months-vintage lady became hired at a organization for five years. During her term of
employment the employer began having economic trouble and decided that they needed to
layoff 5 of its 125 personnel in an effort to live in business. The company laid off the girl
employee and four other female coworkers. All of the girls had a history of receiving fine worker
reviews. The laid-off workers filed a claim towards the business enterprise alleging
discrimination. Which one of the following satisfactory describes the idea of the employment
practices claim filed against the organization?
A. Sexual harassment
B. Retaliation
C. Age discrimination
D. Wrongful termination - ANS-D
A banking employer is attempting to manipulate cyber risks to their on-line banking web site
through all method vital. A procedural manage option for them is
A. Training of personnel on attitudes and behaviors to save you loss.
B. Centralizing obligations for cyber security by using appointing a major data officer.
C. Implementing a biometrics protection function for key personnel.
D. Using firewalls, antivirus software, and information encryption. - ANS-D
A chart showing the probability of acquiring the numbers one via six on one roll of one die
represents a
A. Trend analysis distribution.
B. Empirical possibility distribution.
C. Theoretical probability distribution.
D. Continuous chance distribution. - ANS-C
A coefficient of variant is derived via
A. Taking the rectangular root of the sum of the squares of the differences between the
consequences and the suggest of a distribution.
B. Dividing a distribution's trendy deviation by way of its mean.
C. Summing the squares of the variations among numerous points and a straight line on a
graph.
D. Dividing a distribution's popular deviation by way of its mode. - ANS-B
,A organization's gain administrator, while appearing on behalf of the business enterprise,
invested one hundred percentage of the plan funds in speculative stock. The return at the
funding become ten fold. The duty violated via the plan fiduciary in this example is
A. Diversification.
B. Prudence.
C. Loyalty.
D. Adherence. - ANS-A
A aware act or selection no longer to behave that reduces the frequency and/or severity of
losses or makes losses greater predictable is
A. Risk control.
B. Risk prevention.
C. A hazard source.
D. A result of hazard. - ANS-A
A creation business enterprise primarily based within the U.S. Has building contracts in five
exclusive foreign countries. The production agency agreed to simply accept price for its work in
every usa's forex. The danger of loss of price whilst those overseas bills are transformed to U.S.
Bucks is known as
A. Pure danger.
B. Credit hazard.
C. Exchange-fee chance.
D. Liquidity chance. - ANS-C
A settlement programmer agrees to assemble a website for a chocolate candy store if you want
to increase its online advertising and marketing presence. The programmer consents to have
the website up and going for walks in time for Easter but has to reduce some corners to fulfill
the cut-off date and leaves out a protection feature. The website is hacked and the chocolate
candy store misses the Easter sweet season. Which one of the following nice describes the
programmer's cyber hazard loss publicity?
A. The programmer has an additional cost exposure.
B. The programmer has an errors and omissions liability exposure.
C. The programmer has an marketing injury legal responsibility publicity.
D. The programmer has an highbrow belongings liability publicity. - ANS-B
A company board of administrators owes which one of the following responsibilities concerning
material data approximately a organization's loss exposures and changes to them?
A. Duty to provide due weight and consideration
B. Duty to reveal
C. Duty to assess
D. Duty you acquire insurance - ANS-B
A business enterprise owned by way of its shareholders is controlled by using its
,A. Proxies.
B. Management.
C. Board of Advisors.
D. Board of Directors. - ANS-D
A information evaluation technique that an insurer would possibly use to research claims
adjusters' notes is
A. Social community analysis.
B. A classification tree.
C. Text mining.
D. Regression. - ANS-C
A drawback of cost-at-danger (VaR) is that VaR
A. Does no longer appropriately degree the quantity to which a loss would possibly exceed the
brink.
B. Uses financial gadgets to specific the ability loss as opposed to chances.
C. Expresses complicated positions in a unmarried price.
D. Quantifies the capability loss associated with an investment selection. - ANS-A
A lady manager consistently reprimands male, but now not girl, employees for using the Internet
for private use. This is an instance of
A. Disparate impact.
B. Overt discrimination.
C. Disparate treatment.
D. Sexual harassment. - ANS-C
A economic analyst wants to evaluate the effect that a expected boom in the price of metal will
have at the net profits of East Side Manufacturing. Which one of the following size strategies
must the analyst use?
A. Cost at risk
B. Earnings at danger
C. Conditional price at threat
D. Value at risk - ANS-B
A economic ratio of income adjusted for hazard to the amount of capital required to hold
solvency at a given chance tolerance stage is referred to as
A. Risk-adjusted go back on capital.
B. Return on economic capital.
C. Return on e-book value.
D. Risk-based totally capital. - ANS-A
A first celebration can incur network safety legal responsibility while its database is breached if it
damages a third birthday celebration's community as a result of
A. Content that infringes every other party's trademark being located on a website.
, B. Content that infringes every other party's copyright being located on a website.
C. Libelous content material being located on a internet site.
D. Malicious code being transmitted to the third celebration's network. - ANS-D
A organization of huge life insurance corporations pooled their mortality facts over the past 25
years. Based at the pooled mortality information, a mortality table displaying the opportunity of
demise at particular a long time became developed. The insurers used these possibilities in
pricing lifestyles coverage merchandise. The probabilities developed from the pooled mortality
experience of the insurers are best described as
A. Dependent probabilities.
B. Empirical possibilities.
C. Conditional possibilities.
D. Theoretical probabilities. - ANS-B
A land developer employed Build Rite Construction Company to build 3 sets of starter homes in
a Metro City suburb. The production is to be completed in levels, with finishing touch of every
phase (Phase 1, then Phase 2, after which Phase three) required before the next creation
section can begin. As that is a large scale undertaking, Build Rite's controller used pc simulation
to investigate the time essential for of completion of each segment. The first-class case, most
possibly, and worst case results, respectively, are summarized under. Based on the simulation
outcomes, which one of the following statements is true?
Phase 1: 15 months, sixteen months, 18 months
Phase 2: 10 months, 12 months, 24 months
Phase 3: 17 months, 20 months, 36 months
A. Under the quality case state of affairs, construction of all 3 phases may be finished in three or
few years.
B. Construction might be finished in precisely four years.
C. Under the worst case state of affairs, construc - ANS-D
A predominant distinction among selection bushes and event bushes is
A. That choice trees have one feasible outcome; event bushes have numerous feasible effects.
B. The portrayal and evaluation of numerous pathways.
C. The process this is used to put together the diagrams.
D. That event bushes analyze the results of unintended activities in place of choices. - ANS-D
A matrix of the chance and capability impact results of the company's dangers is referred to as a
A. Risk evaluation.
B. Risk sign in.
C. Risk identity.
D. Risk map. - ANS-D
A new espresso company primarily based in Indonesia has determined a call for for its product
in North America. As such, it has established three locations inside the United States and one in
Canada. The Board of Directors has worries approximately the 'farm to fork' concept being it's
A 5 Whys analysis is used generally for issues concerning
A. Environmental factors.
B. Technology.
C. Human factors.
D. Construction. - ANS-C
A 35-12 months-vintage lady became hired at a organization for five years. During her term of
employment the employer began having economic trouble and decided that they needed to
layoff 5 of its 125 personnel in an effort to live in business. The company laid off the girl
employee and four other female coworkers. All of the girls had a history of receiving fine worker
reviews. The laid-off workers filed a claim towards the business enterprise alleging
discrimination. Which one of the following satisfactory describes the idea of the employment
practices claim filed against the organization?
A. Sexual harassment
B. Retaliation
C. Age discrimination
D. Wrongful termination - ANS-D
A banking employer is attempting to manipulate cyber risks to their on-line banking web site
through all method vital. A procedural manage option for them is
A. Training of personnel on attitudes and behaviors to save you loss.
B. Centralizing obligations for cyber security by using appointing a major data officer.
C. Implementing a biometrics protection function for key personnel.
D. Using firewalls, antivirus software, and information encryption. - ANS-D
A chart showing the probability of acquiring the numbers one via six on one roll of one die
represents a
A. Trend analysis distribution.
B. Empirical possibility distribution.
C. Theoretical probability distribution.
D. Continuous chance distribution. - ANS-C
A coefficient of variant is derived via
A. Taking the rectangular root of the sum of the squares of the differences between the
consequences and the suggest of a distribution.
B. Dividing a distribution's trendy deviation by way of its mean.
C. Summing the squares of the variations among numerous points and a straight line on a
graph.
D. Dividing a distribution's popular deviation by way of its mode. - ANS-B
,A organization's gain administrator, while appearing on behalf of the business enterprise,
invested one hundred percentage of the plan funds in speculative stock. The return at the
funding become ten fold. The duty violated via the plan fiduciary in this example is
A. Diversification.
B. Prudence.
C. Loyalty.
D. Adherence. - ANS-A
A aware act or selection no longer to behave that reduces the frequency and/or severity of
losses or makes losses greater predictable is
A. Risk control.
B. Risk prevention.
C. A hazard source.
D. A result of hazard. - ANS-A
A creation business enterprise primarily based within the U.S. Has building contracts in five
exclusive foreign countries. The production agency agreed to simply accept price for its work in
every usa's forex. The danger of loss of price whilst those overseas bills are transformed to U.S.
Bucks is known as
A. Pure danger.
B. Credit hazard.
C. Exchange-fee chance.
D. Liquidity chance. - ANS-C
A settlement programmer agrees to assemble a website for a chocolate candy store if you want
to increase its online advertising and marketing presence. The programmer consents to have
the website up and going for walks in time for Easter but has to reduce some corners to fulfill
the cut-off date and leaves out a protection feature. The website is hacked and the chocolate
candy store misses the Easter sweet season. Which one of the following nice describes the
programmer's cyber hazard loss publicity?
A. The programmer has an additional cost exposure.
B. The programmer has an errors and omissions liability exposure.
C. The programmer has an marketing injury legal responsibility publicity.
D. The programmer has an highbrow belongings liability publicity. - ANS-B
A company board of administrators owes which one of the following responsibilities concerning
material data approximately a organization's loss exposures and changes to them?
A. Duty to provide due weight and consideration
B. Duty to reveal
C. Duty to assess
D. Duty you acquire insurance - ANS-B
A business enterprise owned by way of its shareholders is controlled by using its
,A. Proxies.
B. Management.
C. Board of Advisors.
D. Board of Directors. - ANS-D
A information evaluation technique that an insurer would possibly use to research claims
adjusters' notes is
A. Social community analysis.
B. A classification tree.
C. Text mining.
D. Regression. - ANS-C
A drawback of cost-at-danger (VaR) is that VaR
A. Does no longer appropriately degree the quantity to which a loss would possibly exceed the
brink.
B. Uses financial gadgets to specific the ability loss as opposed to chances.
C. Expresses complicated positions in a unmarried price.
D. Quantifies the capability loss associated with an investment selection. - ANS-A
A lady manager consistently reprimands male, but now not girl, employees for using the Internet
for private use. This is an instance of
A. Disparate impact.
B. Overt discrimination.
C. Disparate treatment.
D. Sexual harassment. - ANS-C
A economic analyst wants to evaluate the effect that a expected boom in the price of metal will
have at the net profits of East Side Manufacturing. Which one of the following size strategies
must the analyst use?
A. Cost at risk
B. Earnings at danger
C. Conditional price at threat
D. Value at risk - ANS-B
A economic ratio of income adjusted for hazard to the amount of capital required to hold
solvency at a given chance tolerance stage is referred to as
A. Risk-adjusted go back on capital.
B. Return on economic capital.
C. Return on e-book value.
D. Risk-based totally capital. - ANS-A
A first celebration can incur network safety legal responsibility while its database is breached if it
damages a third birthday celebration's community as a result of
A. Content that infringes every other party's trademark being located on a website.
, B. Content that infringes every other party's copyright being located on a website.
C. Libelous content material being located on a internet site.
D. Malicious code being transmitted to the third celebration's network. - ANS-D
A organization of huge life insurance corporations pooled their mortality facts over the past 25
years. Based at the pooled mortality information, a mortality table displaying the opportunity of
demise at particular a long time became developed. The insurers used these possibilities in
pricing lifestyles coverage merchandise. The probabilities developed from the pooled mortality
experience of the insurers are best described as
A. Dependent probabilities.
B. Empirical possibilities.
C. Conditional possibilities.
D. Theoretical probabilities. - ANS-B
A land developer employed Build Rite Construction Company to build 3 sets of starter homes in
a Metro City suburb. The production is to be completed in levels, with finishing touch of every
phase (Phase 1, then Phase 2, after which Phase three) required before the next creation
section can begin. As that is a large scale undertaking, Build Rite's controller used pc simulation
to investigate the time essential for of completion of each segment. The first-class case, most
possibly, and worst case results, respectively, are summarized under. Based on the simulation
outcomes, which one of the following statements is true?
Phase 1: 15 months, sixteen months, 18 months
Phase 2: 10 months, 12 months, 24 months
Phase 3: 17 months, 20 months, 36 months
A. Under the quality case state of affairs, construction of all 3 phases may be finished in three or
few years.
B. Construction might be finished in precisely four years.
C. Under the worst case state of affairs, construc - ANS-D
A predominant distinction among selection bushes and event bushes is
A. That choice trees have one feasible outcome; event bushes have numerous feasible effects.
B. The portrayal and evaluation of numerous pathways.
C. The process this is used to put together the diagrams.
D. That event bushes analyze the results of unintended activities in place of choices. - ANS-D
A matrix of the chance and capability impact results of the company's dangers is referred to as a
A. Risk evaluation.
B. Risk sign in.
C. Risk identity.
D. Risk map. - ANS-D
A new espresso company primarily based in Indonesia has determined a call for for its product
in North America. As such, it has established three locations inside the United States and one in
Canada. The Board of Directors has worries approximately the 'farm to fork' concept being it's
